Correlation Between Avanos Medical and Sunrun
Can any of the company-specific risk be diversified away by investing in both Avanos Medical and Sunrun at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Avanos Medical and Sunrun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avanos Medical and Sunrun Inc, you can compare the effects of market volatilities on Avanos Medical and Sunrun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Avanos Medical with a short position of Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanos Medical and Sunrun.
Diversification Opportunities for Avanos Medical and Sunrun
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avanos and Sunrun is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Avanos Medical and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc and Avanos Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Avanos Medical are associated (or correlated) with Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of Avanos Medical i.e., Avanos Medical and Sunrun go up and down completely randomly.
Pair Corralation between Avanos Medical and Sunrun
Given the investment horizon of 90 days Avanos Medical is expected to under-perform the Sunrun. But the stock apears to be less risky and, when comparing its historical volatility, Avanos Medical is 2.02 times less risky than Sunrun. The stock trades about -0.03 of its potential returns per unit of risk. The Sunrun Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Sunrun Inc on September 11, 2025 and sell it today you would earn a total of 231.00 from holding Sunrun Inc or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanos Medical vs. Sunrun Inc
Performance |
| Timeline |
| Avanos Medical |
| Sunrun Inc |
Avanos Medical and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanos Medical and Sunrun
The main advantage of trading using opposite Avanos Medical and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanos Medical position performs unexpectedly, Sunrun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sunrun will offset losses from the drop in Sunrun's long position.| Avanos Medical vs. Varex Imaging Corp | Avanos Medical vs. Standard Biotools | Avanos Medical vs. Cytek Biosciences | Avanos Medical vs. Clearpoint Neuro |
| Sunrun vs. Enphase Energy | Sunrun vs. SolarEdge Technologies | Sunrun vs. Frontline | Sunrun vs. Core Natural Resources, |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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